Obama nominates Janet Yellen to lead Federal Reserve

7:39 PM, October 9, 2013

President Barack Obama applauds as he walks out the State Dining Room of the White House in Washington on Wednesday with outgoing Federal Reserve Chairman Ben Bernanke and Janet Yellen, his nominee to replace Bernanke. / Pablo Martinez Monsivais/Associated Press

By David Jackson

USA TODAY

President Barack Obama announces his intent to nominate Dr. Janet Yellen as Chair of the Board of Governors of the Federal Reserve System during a press conference in the State Dining Room of the White House, October 9, 2013 in Washington, D.C. (Olivier Douliery/Abaca Press/MCT) / MCT

Janet Yellen

AGE-BIRTHPLACE: 67; Brooklyn, N.Y. EXPERIENCE: Vice chair, Federal Reserve, 2010-present; president, Federal Reserve Bank of San Francisco, 2004-10; chair, White House Council of Economic Advisers, 1997-99; member, Federal Reserve Board of Governors, 1994-97; faculty member, University of California, Berkeley, 1980-94 (on leave); lecturer at London School of Economics and Political Science, 1978-80; economist, Federal Reserve, 1977-78; assistant professor at Harvard University, 1971-76. EDUCATION: Bachelor’s degree in economics from Brown University, 1967; doctorate in economics from Yale University, 1971. FAMILY: Husband George Akerlof, Nobel laureate in economics (2001) and Berkeley professor; son Robert Akerlof. QUOTE: “I hope and trust that the days of ‘never explain, never excuse’ are gone for good, and that the Federal Reserve continues to reap the benefits of clearly explaining its actions to the public.” — Speech to Society of American Business Editors and Writers, April 4, 2013

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President Barack Obama formally nominated Janet Yellen on Wednesday to chair the Federal Reserve board, calling her “one of the nation’s foremost economists and policy makers.”

Saying she understands “the human costs” of a struggling economy, Obama said during a White House ceremony that “America’s workers and their families will have a champion in Janet Yellen.”

If confirmed by the Senate, Yellen would be the first woman to lead the nation’s central bank, a key player in the global economy — and “a role model for a lot of folks out there,” Obama said.

She would also be the first Democrat to lead the Fed since President Jimmy Carter nominated Paul Volcker in 1979.

In brief remarks, Yellen said that economy is recovering, but more needs to be done, “particularly for those hardest hit by the Great Recession” that began in 2008.

Pledging “to promote maximum employment, stable prices, and a strong and stable financial system,” Yellen said that “too many Americans still can’t find a job, and worry how they’ll pay their bills and provide for their families.”

Yellen would replace Ben Bernanke, who is to retire after completing his second four-year term on Jan. 31.

Naming Bernanke’s successor, Obama said, is “one of the most important economic decisions that I’ll make as president,” noting that the Fed chair “is one of the most important policy makers in the world, and the next chair will help guide our economy after I’ve left office.”

Obama cited Yellen’s experience at the Fed, including its San Francisco bank, and praised her for sounding an early warning on the housing bubble. “She is a proven leader and she’s tough, and not just because she’s from Brooklyn,” Obama said.

Obama made the nomination on the ninth day of the government shutdown. The U.S. also is eight days from hitting its $16.7-trillion debt ceiling, creating the prospect of a government default on its debts.

Though members of the Democratic majority in the Senate predicted smooth confirmation of Yellen, at least one Republican raised a note of caution.

Sen. Bob Corker, R-Tenn., said that he voted against Yellen’s nomination for vice chair in 2010 because of her “dovish views” on monetary policy.

“We will closely examine her record since that time, but I am not aware of anything that demonstrates her views have changed,” said Corker, a member of the Senate Banking Committee that will hold confirmation hearings for Yellen.

Sen. Charles Schumer, D-N.Y., meanwhile, said that “she’s an excellent choice and I believe she’ll be confirmed by a wide margin.”

Rob Nichols, the forum president, said his organization looks forward to working with Yellen and the Fed “to ensure a smooth and successful transition to more conventional monetary policy, a strong and stable financial system and a growing economy.”

In addition to her years as vice chair, Yellen also served as a governor for the San Francisco branch of the Fed.

During his eight years at the helm, Bernanke grappled with the worst economic crisis since the Great Depression of the 1930s.

Obama, who nominated Bernanke for his second term, praised the outgoing chairman for strong leadership during “some of the most daunting economic challenges of our lifetime.”